EVgo (NASDAQ:EVGO) and Zalando (OTCMKTS:ZLNDY) Critical Comparison

Zalando (OTCMKTS:ZLNDY) and EVgo (NASDAQ:EVGO) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Zalando and EVgo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zalando	0	1	1	2	3.25
EVgo	2	3	4	0	2.22

EVgo has a consensus target price of $2.79, indicating a potential upside of 56.06%. Given EVgo’s higher probable upside, analysts clearly believe EVgo is more favorable than Zalando.

Earnings & Valuation

This table compares Zalando and EVgo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zalando	$13.97 billion	0.54	$243.36 million	$0.14	109.51
EVgo	$402.95 million	1.39	-$41.57 million	($0.40)	-4.46

Zalando has higher revenue and earnings than EVgo. EVgo is trading at a lower price-to-earnings ratio than Zalando, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

17.4% of EVgo shares are held by institutional investors. 0.1% of EVgo shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Zalando and EVgo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zalando	0.45%	2.30%	0.70%
EVgo	-13.50%	N/A	-5.75%

Risk and Volatility

Zalando has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, EVgo has a beta of 2.87, meaning that its share price is 187% more volatile than the S&P 500.

Summary

Zalando beats EVgo on 9 of the 15 factors compared between the two stocks.

About Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.

About EVgo

EVgo, Inc. owns and operates a direct current fast charging network for electric vehicles (EVs) in the United States. The company offers electricity directly to drivers, who access its publicly available networked chargers; original equipment manufacturer charging and related services; fleet and rideshare public charging services; and charging as a service and fleet dedicated charging services. It also provides ancillary services, such as customization of digital applications, charging data integration, loyalty programs, access to chargers behind parking lot or garage pay gates, microtargeted advertising, and charging reservations; and hardware, design, and construction services for charging sites, as well as ongoing operations, maintenance, and networking and software integration solutions through eXtend. In addition, it offers PlugShare such as data, research, and advertising services and equipment procurement and operational services. EVgo, Inc. was incorporated in 2010 and is headquartered in Los Angeles, California.EVgo, Inc. operates as a subsidiary of EVgo Holdings LLC.